Feb 14, 2013 12:30am EST
and threatened to throw the country into default. >> narrator: without raising the debt ceiling, the government would be unable to pay its bills. cantor saw the threat of a no vote as leverage to force the president to accept dramatic spending cuts. >> you always look for these moments when the president has to have something passed. but the debt ceiling represents the equivalent of a massive fiscal heart attack. >> narrator: cantor told them no president could ignore the threat. >> it has to be done. it's essential. if you don't raise the debt limit, you can no longer borrow, you can't pay your bills. you default. >> narrator: the new republicans got the message. >> in other words, "look guys, as a team we recognize that this is a leverage point. trust us and we're going to use it so that you fulfill your campaign promises." >> narrator: majority leader cantor had laid out an approach that would put the new congress in direct conflict with the white house. >> it was clear the republicans were going to try to extract some price. and i think the question was, how significant would that price be?
Feb 14, 2013 6:00am EST
? >> yes. >> confronting a fiscal cliff in january, potential debt ceiling dault, in march, sequestration, government shutdown -- could this shake the confidence of some investors and our ability to deal with our responsibility? >> yes, congressman, we think that perennial crisis mode of fiscal policy over the past few years is reducing people's confidence. how big an effect that is, we don't know. >> the gentleman's time has expired. >> thank you, chair and thank you for being back with us. by anyone's objective measure, we would consider you a smart and intelligent man and a good economist. >> thank you, congressman. >> it strikes me that some of us want to speechify rather than use this precious time to engage you in conversation. for the record, i really appreciate that line of questioning. i will try to continue on in that regard. speaking of speechifying, we heard it is impossible to get ourselves out of this debt situation through spending cuts alone. i want to understand, that if i am correct, that the cbo projects that revenue will double from 2012 levels to $5 trillion in 2023
Feb 14, 2013 5:00pm EST
-- we're not going to raise the debt ceiling. we're going to allow the federal government to default on previously acquired obligations of the united states so not pay our bills that we already acquired and risk our a.a.a. debt -- a.a.a. credit rating if you do not impose dramatic cuts. what the president said, ok, we'll give you some cuts upfront and we'll set up something called the supercommittee, three democrats from the house, three republicans from the house, three republicans from the senate, three democrats from the senate, we call that the supercommittee and they are going to give us an up or down vote on some other cuts. but if they don't then we are going to have this thing called the sequester and it will be across-the-board cuts in a dramatic and really imposing way. the sequester is what we're facing now because the supercommittee failed. now, the supercommittee didn't just fail. what we didn't know is that when the republicans, both house and senate, appointed their members of the supercommittee, all of them signed a promise to a man named grover norquist never to rais